The U.S. stock market continued its gradual rebound from a plunge that lasted almost the entire month of October, and many of the biggest gains Thursday came from stocks that struggled badly last month.
Stocks headed higher after U.S. President Donald Trump tweeted that he had spoken to Chinese President Xi Jinping and that the two countries were making some progress in trade negotiations.
Strong earnings from U.S. companies have helped the market recover its footing over the last three days. Chemicals maker DowDuPont jumped after reporting a strong quarter, as did Arm & Hammer maker Church & Dwight and insurer AIG. Apple climbed 1.5 percent to $222.22 prior to releasing its quarterly report, but it slumped 4 percent in aftermarket trading after reporting that it sold fewer iPhones than analysts expected and gave a weak forecast for the current period.
The S&P 500 index added 28.63 points, or 1.1 percent, to 2,740.37. The Dow Jones Industrial Average picked up 264.98 points, or 1.1 percent, to 25,380.74. The Nasdaq composite climbed 128.16 points, or 1.8 percent, to 7,434.06. The Russell 2000 index jumped 33.57 points, or 2.2 percent, to 1,544.98.
Exporters rose as the dollar slumped. The ICE US Dollar Index slid 0.9 percent after reaching a 16-month high on Wednesday. A weaker dollar helps companies that do a lot of business outside the U.S., as it makes their products more affordable in foreign markets and also increases their profits when they are translated back into dollars.
Boeing rose 2.3 percent to $363.07 while farm equipment maker Deere added 3.8 percent to $140.65. Among chipmakers, Nvidia gained 3.5 percent to $218.11 and Advanced Micro devices leaped 11 percent to $20.22. The S&P 500 fell 6.9 percent last month, and technology and industrial companies and retailers fared even worse.
The decline in the dollar also sent metals prices sharply higher. Gold jumped 1.9 percent to $1,238.60 an ounce. Silver soared 3.5 percent to $14.78 an ounce. Copper gained 2.4 percent to $2.72 a pound.
The pound rose sharply following reports that Britain and the European Union had reached a deal to give U.K. financial services companies access to the bloc after Brexit. The British pound rose to $1.3018 from $1.2771.
Germany’s DAX rose 0.2 percent and the British FTSE 100 dipped 0.2 percent. After a big rally Wednesday, the CAC 40 in France fell 0.2 percent.
Oil prices continued to weaken after the Department of Energy said U.S. crude stockpiles increased for the sixth straight week. Benchmark U.S. crude slumped 2.5 percent to $63.69 a barrel in New York. Brent crude, used to price international oils, shed 2.9 percent to $72.89 a barrel in London.
Wholesale gasoline fell 2 percent to $1.72 a gallon and heating oil skidded 2.2 percent to $2.20 a gallon. Natural gas fell 0.7 percent to $3.24 per 1,000 cubic feet.
Bond prices turned higher. The yield on the 10-year Treasury note fell to 3.14 percent from 3.15 percent.
The dollar fell to 112.69 yen from 113.06 yen. The euro rose to $1.1409 from $1.1314.